tv CBS Morning News CBS August 8, 2011 4:00am-4:30am PDT
market mayhem, it's a sell-off as investors around the world react to the u.s. losing its perfect credit rating and with wall street opening soon, the worst could still be ahead. and fallen heroes, america mourns the loss of 30 warriors killed in afghanistan on the war's deadliest day. >> he loved philadelphia. north catholic, wisinomi, mayfair, and he loved all you guys and all his friends, all the kids who were here yesterday. captioning funded by cbs >> and good morning, everyone. appreciate you joining us. i'm terrell brown in for betty nguyen.
it may not be armageddon but it sure feels like it, that's what one financial expert says it feels like the downgrade feels like it's having on stock markets around the world this morning. japan's nikkei dropped more than 2% this morning. charlie dagata is in london with the latest. good morning to you. >> reporter: good morning to you, terrell. european investors are bracing for another turbulent day on the markets as expected. britain, france, germany, all opened down this morning, following losses in the asian markets overnight. asian markets opened, teetered, then tumbled. japan's nikkei stocks average dropped 2.2%. hong kong's hang seng fell 3.9%. south korea hovered down 4%, after plummeting nearly 7% at one point. the european central bank threw italy and spain a lifeline
when officials announced actively buying bonds, holding huge amounts of debts at bay until european partners can come up with more bailout money, but some analysts say they may not be enough. >> they need to ease monetary policy. they need to print money if they're going to try and engineer some sort of exit route out of this crisis. >> reporter: the big worry continues to be that italy and spain could go the way of greece. the country's been teetering on the brink of bankruptcy and crippled by nationwide protests over strict budget cuts. finance chiefs from britain, the united states and others from the g-7 industrial powers have also pledged to take whatever action is necessary to stabilize the markets. global trading will struggle to recover after a week that saw $2.5 trillion wiped off stocks, largely on fears the u.s. could be sliding back into a recession. one european investor said the best thing about last week was that it finally came to an end.
now the pledge from the g-7, bold measures, most importantly the idea of liquidity, further cash came as welcome news to investors here but as always, all eyes on the u.s., when it opens for business later in the day. terrell? >> charlie dagata in london thank you so much. wall street bracing for the worst this morning, dow futures are already trading down over 200 points. ashley morrison here in new york with that and more. ashley, good morning to you. >> good morning to you, terrell. traders and investors alike are on edge with wall street's opening bell centering a little later on this morning. this will be the street's first chance to react to the downgrade. last week stocks got crushed losing nearly $1 trillion in value. the dow dropped almost 6% while the nasdaq lost more than 8%. it is important to note that only one of the three major ratings agencies, standard & poor's, downgraded america's credit. moody's and fitch have not indicated they are ready to do so, at least not yet.
s&p has taken a lot of heat for their action but on sunday the head of the ratings committee said if the u.s. doesn't clean up its fiscal act soon, it could be downgraded america's credit rating again as soon as within six months. >> if the fiscal position of the united states deteriorates further or if the political gridlock becomes more entrenched, that could lead to a downgrade. the outlook indicates at least a one in three chance of a downgrade over that period. >> treasury secretary tim geithner immediately attacked s&p for its decision. in an interview with cnbc he acknowledged that partisan bickering in washington didn't help but said the ratings agency had no solid basis for its downgrade. >> s&p's shown really terrible judgment and handled itself poorly and shown a stunning lack of knowledge about basic u.s. fiscal budget math and i think
they've drawn exactly the wrong conclusions. >> geithner made another big decision on sunday. he will remain as head of the treasury department. there was intense speculation this summer geithner would leave his post after the debt ceiling was raised in august. instead he will stay on the job. terrell? >> lots to talk about here, ashley. ashley morrison here in new york, thank you so much. meanwhile the markets are spinning. washington is playing the blame game over who caused the u.s. to lose its aaa credit rating from standard & poor's. on krbts on cbs's "face the nation," david axelrod pointed the finger at republicans. >> this is the tea party downgrade, the tea party brought us to the brink of a default. it was the right thing to do to avoid that default. it was the wrong thing to do, to push the country to that point. >> on that same broadcast, republican senator lindsay graham had a different take. he says the tea party is the result of what's wrong with washington and blames the president for the downgrade.
>> this president failed to lead in any other private sector enterprise he would be fired. if he was asking to be reupped to run a football team, they wouldn't hire him. if he was trying to be a ceo for a second contract, he wouldn't be hired. >> as part of the u.s. deal to raise the debt ceiling a congressional super committee has to come up with $1.5 trillion in spending cuts by thanksgiving but even that may not be enough to convince s&p to raise the country's credit rating. there was more unrest overnight in london. police were on the streets in force sunday in the tottenham district, they're trying to prevent a repeat of saturday's riot, a peaceful protest on police that turned violent. buses were set on fire, stores were looted. two dozen officers were injured and more than 50 people were arrested. the violence is raising questions about london's 2012 olympic games because police couldn't prevent that situation from spiraling out of control. more details are emerging on the helicopter crash in afghanistan that killed 30 americans saturday.
most of the dead were elite navy s.e.a.l.s, the single deadliest loss for u.s. forces in the decade-long war. jay dow is in washington with the latest. jay, good morning to you. >> good morning to you, terrell. most of the s.e.a.l.s who died were from the same elite unit who killed osama bin laden although none took part in that mission. this weekend's crash proved what the s.e.a.l.s know too well. their missions may lead to success but not without huge risk. americans across the country are mourning the loss of 30 fallen heroes. >> i'm proud of him. they died doing what they wanted to do, protecting us and keeping us safe. >> reporter: the troops died in afghanistan saturday morning after taliban fighters apparently shot down their chinoook helicopter like this one with a rocket propelled grenade. most of the soldiers were u.s. navy s.e.a.l.s, rushing to help a u.s. army ranger unit under attack. >> he loved his family, sister. just became an uncle.
>> reporter: charles strange's son, michael, was one of those killed. the 25-year-old knew in high school he wanted to join the military. sons, husbands and fathers make up the rest of the victims. patrick hamburger of nebraska had been planning to propose to his girlfriend. aaron carson vaughn leaves behind a wife and two young children. his baby girl, born just weeks before he was deployed. >> he was such a good boy and he loved his country enough to put his life on the line. >> reporter: the mission was just one of dozens of operations u.s. special forces carry out every week in afghanistan. an investigation is under way to figure out how and why this time it ended in tragedy. >> we're going to question something, why was it a chinoook? the chinoook helicopters are big, lumbering, noisy, not the black hawk, getting in and out quickly. >> reporter: u.s. forces recovered the wreckage of the helicopter sunday, along with the remains of the troops. their bodies will be flown to dover air force base in delaware later this week for a somber homecoming. the u.s.-led coalition intends to rely more heavily on special
ops missions as it draws down the number of combat troops over the next three and a half years. >> jay dow in washington, thank you. residents of a town in northern ohio are still reeling this morning after a shooting rampage that left eight people dead. it happened sunday in coply, west of akron, apparently as a domestic dispute. police say the gunman shot his girlfriend after an argument. he then shot her brother and five other people. neighbors couldn't believe what they saw. >> pow, pow, pow, he shot her three times, and i ran. at this point, getting too close to me. >> they were a good family, kind family, would do anything for you. we've known them for three generations. >> the gunman was shot and killed in an exchange with police. coming up on the "morning news" workers on strike at a major telecom company, find out if you're affected. back from the dead, a restaurant in japan serves up a creepy, crawly and apparently tasty delight. this is the "cbs morning news." t.
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a close call for a hydroplaned pilot in a race sunday in seattle. the boat went airborne and landed upside down in the water. a rescue diver team raced in, after nearly a minute and a half underwater the pilot made it to the surface, she was taken back to the shore. doctors say she'll be just fine. endurance swimmer diana nyad is traveling through the florida strait this is morning, trying to swim from cuba to florida. before sunset sunday, nyad spoke in havana just before starting the marathon. >> now i'm almost 62 years old, woohoo! and i'm standing here at the prime of my life. i think this is the prime when one reaches this age, you still have a body that's strong but now you have a better mind, a mind at peace with the joy of the world. >> if she makes it to the florida keys, nyad will become the first person to make the trip without the aid of a shark
cage. she expects to finish in about 60 hours and arrive wednesday morning. in health news, british cancer researchers isolated a gene linked to a sharply elevated risk of ovarian cancer in women. the study found women with a faulty copy of a gene called rad51d had a 1 in 11 chance of developing ovarian cancer. scientist also try to develop tests to identify those at highest risk. 45,000 verizon workers are on strike this morning. part of the company's land line operations in the northeast. contract negotiations broke down over health care and pensions. verizon claims its land line business is losing money but union officials say the company is making record profits. verizon says the strike does not affect its wireless division. at the movies simeon's reigns supreme. the thriller "rise of the planet of the apes" had a bigger than expected $54 million weekend. and in japan, something that looks like it came out of a
horror movie. you've got to see this. a restaurant there has a dish that they created featuring a squid that appears to be coming back to life. apparently when you pour soy sauce over it the high salt content reacts with the dead creature's tentacles in a way that makes it jump and jump and jump. it would freak me out. in case you're wondering that squid it really dead. the chef cuts the head off before serving it. it's scary but harmless. at around $25 a plate, it's proven to be quite popular with diners. ugh. coming up on your monday morning, weather and in sports, extra innings drama as the rival yankees and red sox battle in boston. we'll be right back. boston. we we'll be right back. indoors or out. [ sniffles ] oh to have relief. prescription nasonex is clinically proven to help relieve nasal allergy symptoms... including congestion, runny and itchy nose and sneezing. [ female announcer ] side effects may include
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versus the leading competitive brand. new charmin basic works for my bottom line. and my bottom. we all go. why not enjoy the go with new charmin basic? here's a look at the w here's a look at the weather in some cities around the country. thunderstorms in new york, 90 degrees. thunderstorms and 92 in miami. partly sunny, 83 in chicago. 105 and sunny in dallas. 80 and partly sunny in los angeles. time now for a check of the national forecast. latest satellite pictures show thunderstorms clouds from the midwest into the south. skies are clear out west. later today, dangerous storms are likely from minneapolis to memphis. hot and dry weather continues to dominate texas with dallas getting its 38th straight day of triple-digit heat and scattered showers and storms are likely in the southeast and northeast. in sports the red sox retake first place in the american league east.
ninth inning, rivera gave up a run that tied the game. forced extra innings, in bottom of the the tenth, josh redding singled to drive the walk-off 3-2 win. in arlington, texas, the rangers elvis anders drove in two runs. texas beat cleveland 5-3, keeping them one game ahead of the angels in the a.l. west. in golf, scott shot a 5 under 65, with steve williams holding his bag. he won the bridgestone invitational by four shots. it was his first major victory. williams was fired by tiger woods earlier this month and called the weekend win the biggest win of his life. woods played in the bridgestone first tournament back since injury, finished in a tie for 37th place. when we come back another look at this morning's top stories. and cyber war. computer hackers claim to have infiltrated 70 law enforcement websites.
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but before wall street opens for the day: how world markets are already reacting to the u-s credit downgrade. two women, found severely burned and unconscious. what's believe to have started the overnight fire. will he run? the speculation surrounding ed lee's scheduled announcement this morning. join us for cbs 5 early edition ... beginning at 4:30. investors brace for the worst on wall street. this morning,,,,
here's a look at the weather on the "cbs morning news." severe storms will pound the midwest from minnesota to missouri as well as the tennessee and ohio valleys. scattered afternoon downpours are likely from florida to the carolinas. the northeast will have clouds and sun with warm temperatures. let's get another look at this morning's top stories. market jitters around the world as asian investors set the tone with a big sell-off, all a reaction to friday's downgrade of the u.s. credit rating by standard & poor's. last week's stocks on wall street lost almost $1 trillion in value. and how did it happen? investigators in afghanistan seek the facts about the loss of a helicopter this weekend that killed 30 american special forces troops. the deadly crackdown, government crackdown continues in syria this morning. reports of artillery fire the eastern city of deir al zour.
witnesses say the city was hit with heavy weapons and machine gunfire, killing more than 42 people on sunday. in the past week 300 people were killed, making it the bloodiest month since the uprising began in march. back in this country anonymous is at it again. after hacking into some of the world's biggest companies, the group targeted something smaller, the websites of 70 mostly rural police stations. the hackers say it's in retaliation for the recent arrests of some of their alleged associates. tony guida has more. >> reporter: much of what anonymous posted on the web amounted to an invasion of privacy but one small town police chief indicated it was more serious. he said the hackers posted pictures of teenage girls in swimsuits, part of an ongoing investigation he declined to discuss. a recent homeland security bulletin obtained by cbs news warns the group's attacks have the potential to result in serious harm to law enforcement and government entities. >> it just amazes me that the effort that people will go to,
to get a hold of information. >> reporter: commander x says he's a member of anonymous. in an earlier interview claimed a greater good for the group's crimes. >> when we have people in power who abuse that power, it is necessary to level the playing field. >> reporter: technology journalist john abell has heard it before. >> you have sort of vigilantes victimizing innocent bystanders and no excuse for that. >> reporter: the latest attacks occurred over the last several days yet some of the departments were unaware of it until the news organizations called for comment. >> it's a cat and mouse game. it's a manageable perfect storm but it's something that we have to live with. >> reporter: because, he says, nothing digital, which is almost everything nowadays, is completely secure from a determined hacker. tony guida, cbs news, new york. this morning on "the early
show," the impact of the u.s. credit downgrade on consumers and ordinary investors. i'm terrell brown. this is the "cbs morning news." ning news." my contacts are so annoying. they're itchy, dry and uncomfortable. i can't wait to take 'em out, throw 'em away and never see them again. [ male announcer ] know the feeling? get the contacts you've got to see to believe. acuvue® oasys brand contact lenses with hydraclear® plus technology, keeping your eyes exceptionally comfortable all day long. it feels like it disappeared on my eye. [ male announcer ] discover why it's the brand eye doctors trust most for comfort. if you have astigmatism, there's an acuvue® oasys lens for that too, realigning naturally with every blink. ask your doctor for acuvue® oasys brand. realigning naturally with every blink.
one way to get the u.s. economy back on track is to increase exports to the rest of the world. most american manufacturers, though, see the odds stacked against them. anthony mason found one well-known company that's hanging tough. >> reporter: skip bowman knows his company would make more money if it shut down this plant and moved his job overseas. >> every day i walk in through that door i'm part of the effort to keep this factory going. >> reporter: new balance is the last major brand to produce athletic shoes in the u.s., about 25% of its manufacturing is still in new england, where it's operated for nearly 100 years. the privately held company says it's committed to its american workers. >> if they were thinking about the bottom line and only the bottom line at all times, we wouldn't be here.
how is your sole, kathy. >> reporter: that reality is not lost on the more than 300 people who work here. they work fast, 220 pieces move through 33 pairs of hands with efficiency. 19 seconds to stitch and inspect each piece, less time to glue the soles. the results are significant. in 2004 it took eight days to finish a pair of performance shoes. today, this group finishes in less than three hours. >> the quicker we make the shoes, the cheaper it is. >> feels good when things are going right, doesn't it. >> yes, it does. >> everybody's trying to continually improve the process, every single one of us, so we can do better. >> reporter: but a new threat has emerged, a trade agreement being pushed by the obama administration called the transpacific partnership, would open eight developing markets to u.s. goods. the goal is to create jobs here, but it also removes a steep
import tax on vietnamese-made sneakers, which could actually threaten jobs at this plant. >> if this tariff were lifted it's not going to help our business out. >> reporter: the bottom line? no matter how efficient, americans are ten times more costly than vietnamese workers, and the cost per shoe would be much lower. >> this trade agreement makes me and the associates nervous because it's going to reduce our competitiveness in making shoes domestically. >> reporter: new balance says it will stand by its workers by adjusting its product line or its prices. the management has vowed to keep the doors open. >> we would not lay off any of our associates. ray, how are you? >> good. >> they're out there on a limb all by themselves, and we are their limb. we got to hold them up, so we have to do our part. >> anthony mason, cbs news, new york. coming up a little later on "the early show," fallout from the u.s. credit rating downgrade. world markets take a hit and
american consumers and investors face huge questions about the future. famine in east africa, millions of lives are threatened. erica hill reports live from the world's largest refugee camp. plus the lollapalooza festival 20 years on. all of that coming up later on "the early show." that will do it for this monday morning edition of the cbs. morning news." i'm terrell brown. take care, everybody. have a great day. -- captions by vitac -- www.vitac.com